Etihad Airways may offer to sell its stake in Jet Airways at ₹150 per share to State Bank of India if an agreement between the various stakeholders is not cobbled up quickly.

According to top sources, high-ranking executives from Etihad met bankers in a bid to try and arrive at a resolution plan, but the talks remained inclusive. Etihad currently owns a 24 per cent stake in Jet Airways, and with no resolution in sight, will probably exit the company.

Jet Privilege sale

“Etihad may also ask SBI to buy its 50.1 per cent stake in Jet Privilege and additionally take over the ₹1,000-crore guarantee for ECBs raised from HSBC. Etihad could consider selling its stake at a discount given the current circumstances, where a deal seems far away,” said a source.

A spokesperson for the UAE airline said: “As a minority shareholder, Etihad is working closely with Indian lenders, the company and key stakeholders to facilitate a solution for Jet Airways.” SBI and Jet did not reply to queries sent by BusinessLine .

According to another source, the entire company will go under the control of lenders if an agreement is not thrashed out soon. “The company has already passed a resolution allowing banks to convert debt into equity. This includes the shares pledged by the promoters,” the source said. Promoter Naresh Goyal’s shares in Jet Airways, amounting to 51 per cent of the overall equity, are understood to be pledged with Punjab National Bank. This may be converted into equity, giving lenders full control of the airline.

While there is still an outside chance that a resolution plan will be worked out, that will require Goyal to agree to completely exit the company, according to a source close to Etihad.

With more than $1 billion in debt, Jet Airways has had to delay payments to banks, employees, suppliers and even aircraft lessors. It has been forced to ground aircraft and cancel routes as a result.

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